question 1 ABC Company borrowed $100,000 on January 1, 20X1. Interest is 5% payable each December 31. They are borrowing the money for three years. On December 31 20X3, the principal and the last interest payment will be due. What is their interest expense on December 31, 20X3? O $1667 O $5000 O $15,000 O $115,000

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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ABC Company borrowed $100,000 on January 1, 20X1.
Interest is 5% payable each December 31. They are
borrowing the money for three years. On December 31
20X3, the principal and the last interest payment will be
due. What is their interest expense on December 31,
20X3?
O $1667
O $5000
O $15,000
O $115,000
Transcribed Image Text:ABC Company borrowed $100,000 on January 1, 20X1. Interest is 5% payable each December 31. They are borrowing the money for three years. On December 31 20X3, the principal and the last interest payment will be due. What is their interest expense on December 31, 20X3? O $1667 O $5000 O $15,000 O $115,000
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